The role of Village Savings and Loan Associations (VLSA) in financing smallholder farmers: a case study of Uganda

Abstract

This research established the relationship between Village savings and Loan associations (VSLA) and financing of smallholder farmers in Uganda. VSLA was the independent variable and the financing of smallholder farmers was the dependent variable. The study used secondary data and different specific objective were measured. The data was collected UBOS relating to UNHS. The data was presented at two levels that is to say univariate analysis and bi-variate analysis. The analysis was done using Pearson Chi-squared measure of the association at a 5% level of significance and the following were observed. VSLA membership had a significant relationship with gender, level of income in quintiles, marital status, job category, place of residence, education level, household size, and Working status The following were therefore recommended; Encouraging and educating smallholder farmers of the benefits of joining VSLA groups. This will improve on their livelihoods. Encourage smallholder farmers to continue saving with these VSLA groups as it will increase their ability to secure enough financial support to grow their business